The Ministry of Corporate Affairs (MCA) has granted permission to a plan to split the core and non-core assets of Shipping Corporation of India (SCI), a move that will pave the way for the government to divest its 63 percent stake in the company.
The ET reported that the move had hit a fresh hurdle after more than 40 objections were filed by vendors and stakeholders ahead of its privatisation. In its submission to the corporate ministry earlier, the Shipping Corporation of India Officers Association (SCIOA) and the Shipping Corporation of India Staff Union (SCISU) had sought to protect the interests of employees post privatisation.
The Ministry of Corporate Affairs had called for a final meeting on demerger on December, 29 last year.
The Ministry of Corporate Affairs directed SCI during a final hearing to file its response on how it proposes to address the concerns. But this direction has thrown the state-run company into a tizzy as to who would sign the affidavit.
The problem arose due to the fact that the delegation of powers in state-run firms such as SCI does not mention instances such as filing of affidavits and the officer signing it. Hence, the company’s board or its chairperson will have to authorise an officer to file the affidavit under his signature.
The Mumbai-headquartered SCI is a government corporation under the ownership of the Ministry of Shipping. SCI is tasked to operate and manage vessels servicing.
Source: Hellenic Shipping News
